Competitive Strategy, Marketing, Positioning, Sales

The Basics of Targeting SMEs

Marketing wisdom: The cost of recruiting a new customer is about 10 times as high as the cost of pursuading an existing customer to buy more. And: The bigger the company, the more money it generally takes to turn them into a customer. Therefore, invest most of your marketing and sales budgets into acquiring small companies with a high potential to grow.

Selling to small companies means: Simple solutions, short sales cycles, easy selling for the channel, low-touch volume business, hockey stick sales – future revenues guaranteed 110%! It’s a no-brainer.

Except for companies that got used to selling to very large corporations. In order for them to be able to sell to small companies, considerable cultural change and financial investment are called for. Product development, sales force, customer support, marketing team, channel infrastructure – the whole thing needs to be refocused. It’s difficult to make things simple and easy. It’s like building a new company, costly in many ways. Not straightforward at all.

And vice versa. Right?

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One thought on “The Basics of Targeting SMEs

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